A Leap Forward in Energy: Efficiency, Innovation, Environmental Sustainability
5 September 2019
Technology advances leads to increased competition in global energy markets
We live in the industrialization 4.0. All companies are actively involved in innovations, active implementation of various new technologies, energy efficiency. A lot of attention is given to environment. This and new technology combined leads to competition in global markets. This competition grows greater every year. Only in the 21st century, the number of countries producing over 4 million barrels a day has doubled, and the number of countries, producing more than 100 billion cubic metres of gas has increased 4 times — Alexander Novak, Minister of Energy of the Russian Federation.
Russian fuel and energy complex making good progress
It is the energy industry that attracts a lot of investment, and the Ministry of Energy is working on developing Russia’s economy — Kirill Dmitriev, Chief Executive Officer, Russian Direct Investment Fund (RDIF).
Fuel and energy driver of Russia’s economy – it accounts for about 25% of GDP, and 50% of all budget revenue. <…> Last year, the total amount of investment in the fuel and energy complex added up to about 5 trillion roubles: about 4,200 billion roubles invested in the oil and gas industry and transport, and 800 billion – in electric power — Alexander Novak, Minister of Energy of the Russian Federation.
Imperfect tax regulation
Surprising but true: the revenue of a middle-sized distilling factory is the same as that of a nuclear power plant. Even though they cannot be compared in terms of their effect on society, intellectual assets, the tax regulation is the same. Basically, that isn’t right. And this must be taken into account — Pavel Livinsky, Chairman of the Management Board, PAO Rosseti.
We are working on <…> incentivizing implementation of new production technologies, that cannot be utilized in today’s fiscal system due to our inert tax system, which, if we are speaking about Western Siberia which is almost the same for all oil and gas fields and mining technologies. <…> The existing fiscal system does not provide incentives for investments in this region [the Arctic] — Alexander Novak, Minister of Energy of the Russian Federation.
Growing environmental risks
Global sustainable development faces significant challenges of fossil energy consumption. This leads to a range of problems: lack of resources, pollution, climate change. <…> By the end of this century, the temperature will have risen by three degrees, which will cause serious natural disasters. <…> Today, the use of traditional fuel does a lot of harm, and these traditional resources are definitely limited — Liu Zhenya, Chairman, Global Energy Interconnection Development and Cooperation Organization (GEIDCO).
Optimizing tax regime
Speaking of our tax regime, there is a lot to be done. <…> The state can, in its turn, further improve the tax regime, so that we could <…> produce the oil, and fairly split the generated value between the investor and the state — Alexander Dyukov, Chairman of the Management Board, Chief Executive Officer, PJSC Gazprom Neft.
Deployment of digital technology in the industry
Speaking of digital transformation, it’s a very important area for us, it will help us improve our efficiency and provides technological progress. The digital products that we made are a very important part of the technology that enables us to work with various types of supplies and so on. <…> We really count on it — Alexander Dyukov, Chairman of the Management Board, Chief Executive Officer, PJSC Gazprom Neft.
The digital transformation concept was approved late last year. <…> Please note that many legislative and regulatory restrictions make us move in this direction. For example, in compliance with the law, we must provide the consumer with a minimal smart meter functionality. <…> Besides, relevant standards for a digital power grid, digital electrical substation are implemented — Pavel Livinsky, Chairman of the Management Board, PAO Rosseti.
We had to take on and are now actively implementing the programme that is to be completed in 2019–2020: a 100% transition to heat metering using new digital technology and complete automation of all our central heat supply units to ensure unmanaged operations of the system — Andrey Vagner, Chairman of the Board, Acting General Director, T Plus.
Focus on environmental sustainability of production
Global energy resource network is a modern energy system of eco-friendly power production with large scope, with consumer electrification, the point of which is smart grids, high-voltage grids, and eco-friendly power sources. <…> Construction of the global energy resource network can be completed by 2050. By that time, the percentage of emission-free energy will have exceeded 70%, with the annual emission rate decreasing down to less than a half of that of 1990 — Liu Zhenya, Chairman, Global Energy Interconnection Development and Cooperation Organization (GEIDCO).
I am sure that quite soon every tonne, every kilo of polymer materials, sold or bought, will contain a certain amount of recycled materials. <…> The point is that polymer waste, like any other waste, becomes part of circular economy: we produce an item, we use it, collect it, and recycle it to use again as a product. The focus on this type of technology, on this type of business models is one of our top-priority areas of work for the near future — Dmitry Konov, Head of the Administration of the Gusevsky City District Municipal Structure.
The material was prepared by the Russian news agency TASS